Segment Reporting

9 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

(22) Segment Reporting

The Company operates in three distinct segments based on our products and our internal organizational structure. The three operating segments, which are also the Company’s reportable segments, are Automotive Electronics, Consumer Electronics, and Biometrics.

Our Automotive Electronics segment designs, manufactures, markets and distributes rear-seat entertainment devices, remote start systems, automotive security, vehicle access systems, mobile interface modules, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, driver distraction products, collision avoidance systems, location-based services, turn signal switches, automotive lighting products, automotive sensing and camera systems, USB ports, cruise control systems, heated seats, and satellite radio products.

Our Consumer Electronics segment designs, manufactures, markets and distributes home theater systems, receivers, high-end loudspeakers, outdoor speakers, business music systems, cinema speakers, wireless and Bluetooth speakers, soundbars, wired and wireless headphones and ear buds, DLNA (Digital Living Network Alliance) compatible devices, remote controls, karaoke products, personal sound amplifiers, infant/nursery products, as well as A/V connectivity, portable/home charging, reception, and digital consumer products.

Our Biometrics segment designs, manufactures, markets, and distributes iris identification and biometric security related products.

The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and there are no material intersegment sales. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations.

Segment data for each of the Company's segments is presented below:

	Automotive Electronics		Consumer Electronics		Biometrics			Corporate/ Eliminations			Total
Three Months Ended November 30, 2021
Net sales	$	61,589	$	129,733	$	355		$	194		$	191,871
Equity in income of equity investees		2,206		—		—			—			2,206
Interest expense and bank charges		417		2,076		423			(2,186	)		730
Depreciation and amortization expense		749		1,647		73			937			3,406
Income (loss) before income taxes (a)		4,818		9,998		(2,263	)		(42,866	)		(30,313	)
Three Months Ended November 30, 2020
Net sales	$	61,488	$	139,039	$	343		$	195		$	201,065
Equity in income of equity investees		1,761		—		—			—			1,761
Interest expense and bank charges		537		2,290		372			(2,728	)		471
Depreciation and amortization expense		876		1,002		75			981			2,934
Income (loss) before income taxes		6,601		20,351		(2,078	)		(5,100	)		19,774
Nine Months Ended November 30, 2021
Net sales	$	150,007	$	320,805	$	813		$	415		$	472,040
Equity in income of equity investees		6,964		—		—			—			6,964
Interest expense and bank charges		1,099		5,962		1,239			(6,460	)		1,840
Depreciation and amortization expense		2,287		3,651		224			2,816			8,978
Income (loss) before income taxes (a)		8,974		17,905		(7,191	)		(48,629	)		(28,941	)
Nine Months Ended November 30, 2020
Net sales	$	111,397	$	288,545	$	703		$	439		$	401,084
Equity in income of equity investees		4,506		—		—			—			4,506
Interest expense and bank charges		1,058		6,530		1,094			(6,402	)		2,280
Depreciation and amortization expense		2,050		2,921		247			3,006			8,224
Income (loss) before income taxes		3,730		33,087		(6,229	)		(8,974	)		21,614

(a) Included within Corporate/Eliminations for the three and nine months ended November 30, 2021 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 24).